Obesity Hype Meets Harsh Reality

Arena Pharmaceuticals' and VIVUS' obesity drugs have struggled out of the gate, which could be good news for Orexigen.

This month, Arena Pharmaceuticals(NASDAQ:ARNA) and VIVUS(NASDAQ:VVUS) reported first-quarter earnings, and the results continued to be unimpressive, with both companies' obesity drugs having trouble gaining any traction. Neither drug has broken the $10 million-per-quarter mark, putting them a long way away from their blockbuster potential.

In the following video, senior biotech specialist Brian Orelli and health-care analyst David Williamson discuss why the drugs have struggled despite the large market, noting that there are issues with both patients and doctors that the companies have to overcome.

The duo also discuss Orexigen's (NASDAQ:OREX) Contrave, a potential third player that should hear from the FDA by June 10. Orexigen was vying for approval around the same time as Arena Pharmaceuticals and VIVUS but was delayed because the FDA wanted a cardiovascular safety study performed. Given the sales so far, the delay doesn't seem to have been particularly detrimental to Orexigen.